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2021 -- H 5051 ======LC000729 ======STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021 ______

A N A C T

RELATING TO , ASSOCIATIONS, AND PARTNERSHIPS -- RHODE ISLAND BUSINESS ACT

Introduced By: Representative Jacquelyn M. Baginski

Date Introduced: January 22, 2021

Referred To: House Corporations

It is enacted by the General Assembly as follows:

1 SECTION 1. Sections 7-1.2-1312 and 7-1.2-1416 of the General Laws in Chapter 7-1.2

2 entitled "Rhode Island Business Corporation Act" are hereby amended to read as follows:

3 7-1.2-1312. Withdrawal of certificate of revocation.

4 (a) Within ten (10) twenty (20) years after issuing a certificate of revocation as provided in

5 § 7-1.2-1311, the secretary of state may withdraw the certificate of revocation and retroactively

6 reinstate the corporation in good standing as if its articles of had not been revoked,

7 except as subsequently provided:

8 (1) Upon the filing by the corporation of the documents it had previously failed to file as

9 set forth in subdivisions (3) -- (6) of § 7-1.2-1310(a); and

10 (2) Upon the payment by the corporation of a penalty for each year or part of a year that

11 has elapsed since the issuance of the certificate of revocation.

12 (3) Upon the filing by the corporation of a certificate of good standing from the Rhode

13 Island division of taxation.

14 (b) If, as permitted by the provisions of this title, another corporation, whether business or

15 nonprofit, , limited-liability partnership or limited-liability company, or

16 domestic or foreign, qualified to transact business in this state, bears or has filed a fictitious business

17 name statement with respect to or reserved or registered a name which is not distinguishable upon

18 the records of the secretary of state from the name of a corporation with respect to which the

1 certificate of revocation is proposed to be withdrawn, then the secretary of state shall condition the

2 withdrawal of the certificate of revocation upon the reinstated corporation's amending its articles

3 of incorporation or otherwise complying with the provisions of this chapter with respect to the use

4 of a name available to it under the laws of this state so as to designate a name which is

5 distinguishable upon the records of the secretary of state from its former name.

6 (c) Upon the withdrawal of the certificate of revocation and reinstatement of the

7 corporation in good standing as provided in subsection (a) of this section, title to any real estate, or

8 any interest in real estate, held by the corporation at the time of the issuance of the certificate of

9 revocation and not conveyed subsequent to the revocation of its articles of incorporation is deemed

10 to be revested in the corporation without further act or deed.

11 7-1.2-1416. Withdrawal of certificate of revocation.

12 (a) Within ten (10) twenty (20) years after issuing a certificate of revocation as provided in

13 § 7-1.2-1415, the secretary of state may withdraw the certificate of revocation and retroactively

14 reinstate the corporation in good standing as if its certificate of incorporation had not been revoked,

15 except as subsequently provided:

16 (1) Upon the filing by the corporation of the documents it had previously failed to file as

17 set forth in subsections (a)(1) -- (a)(4) of § 7-1.2-1414.

18 (2) Upon the payment by the corporation of a penalty for each year or part of a year that

19 has elapsed since the issuance of the certificate of revocation; and

20 (3) Upon the filing by the corporation of a certificate of good standing from the Rhode

21 Island division of taxation.

22 (b) If, as permitted by the provisions of this title, another corporation, whether business or

23 nonprofit limited partnership, limited-liability partnership or limited-liability company, or domestic

24 or foreign, qualified to transact business in this state, bears or has filed a fictitious business name

25 statement with respect to or reserved or registered a name which is not distinguishable upon the

26 records of the secretary of state from the name of a corporation with respect to which the certificate

27 of revocation is proposed to be withdrawn, then the secretary of state shall condition the withdrawal

28 of the certificate of revocation upon the reinstated corporation's amending its articles of

29 incorporation or otherwise complying with the provisions of this chapter with respect to the use of

30 a name available to it under the laws of this state so as to designate a name which is distinguishable

31 upon the records of the secretary of state from its former name.

32 (c) Upon the withdrawal of the certificate of revocation and reinstatement of the

33 corporation in good standing as provided in subsection (a), title to any real estate, or any interest in

34 real estate, held by the corporation at the time of the issuance of the certificate of revocation and

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1 not conveyed subsequent to the revocation of its certificate of incorporation, shall be deemed to be

2 revested in the corporation without further act or deed.

3 SECTION 2. Section 7-6-58 of the General Laws in Chapter 7-6 entitled "Rhode Island

4 Nonprofit Corporation Act" is hereby amended to read as follows:

5 7-6-58. Withdrawal of certificate of revocation.

6 (a) Within ten (10) twenty (20) years after issuing a certificate of revocation as provided in

7 § 7-6-57, the secretary of state may withdraw the certificate of revocation and reinstate the

8 corporation in good standing:

9 (1) Upon filing by the corporation of the documents it had previously failed to file as set

10 forth in § 7-6-56(a)(3) -- (a)(6); and

11 (2) Upon the payment by the corporation of a penalty in the amount of twenty-five dollars

12 ($25.00) for each year or part of a year that has elapsed since the issuance of the certificate of

13 revocation.

14 (b) If as permitted by § 7-6-11(b)(2) another corporation, whether business or nonprofit, or

15 domestic or foreign qualified to transact business in this state, bears or has filed a fictitious business

16 name statement with respect to or reserved or registered in a name that is the same as the name of

17 a corporation regarding which the certificate of revocation is proposed to be withdrawn, the

18 secretary of state shall condition the withdrawal of the certificate of revocation upon the reinstated

19 corporation's amending its articles of incorporation so as to designate a name that is distinguishable

20 upon the records of the secretary of state from its former name.

21 (c) Upon the withdrawal of the certificate of revocation and reinstatement of the

22 corporation in good standing as provided in subsection (a), title to any real estate, or any interest in

23 real estate, held by the corporation at the time of the issuance of the certificate of revocation and

24 not conveyed subsequent to the revocation of its certificate of incorporation shall be deemed to be

25 re-vested in the corporation without further act or deed.

26 SECTION 3. Section 7-16-43 of the General Laws in Chapter 7-16 entitled "The Rhode

27 Island Limited-Liability Company Act" is hereby amended to read as follows:

28 7-16-43. Withdrawal of certificate of revocation.

29 (a) Within ten (10) twenty (20) years after issuing a certificate of revocation as provided in

30 § 7-16-42, the secretary of state may withdraw the certificate of revocation and retroactively

31 reinstate the limited-liability company in good standing as if its certificate of organization or

32 certificate of registration had not been revoked except as subsequently provided:

33 (1) On the filing by the limited-liability company of the documents it had previously failed

34 to file as set forth in subdivisions (3) -- (6) of § 7-16-41(a);

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1 (2) On the payment by the limited-liability company of a penalty in the amount of fifty

2 dollars ($50.00) for each year or part of year that has elapsed since the issuance of the certificate

3 of revocation; and

4 (3) Upon the filing by the limited-liability company of a certificate of good standing from

5 the Rhode Island division of taxation.

6 (b) If, as permitted by the provisions of this chapter or chapters 1.2, 6, 12, or 13 of this title,

7 another limited-liability company, business or nonprofit corporation, registered limited liability

8 partnership or a limited partnership, or in each case domestic or foreign, authorized and qualified

9 to transact business in this state, bears or has filed a fictitious business name statement as to or

10 reserved or registered a name that is the same as, the name of the limited-liability company with

11 respect to which the certificate of revocation is proposed to be withdrawn, then the secretary of

12 state shall condition the withdrawal of the certificate of revocation on the reinstated limited-liability

13 company's amending its articles of organization or certificate of registration so as to designate a

14 name that is not the same as its former name.

15 SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- RHODE ISLAND BUSINESS CORPORATION ACT

***

1 This act would increase the time that the secretary of state can withdraw a certificate of

2 revocation for a corporation, nonprofit corporation, or limited liability company from ten (10) to

3 twenty (20) years without the corporation or limited liability company being required to seek

4 reinstatement by the legislature.

5 This act would take effect upon passage.

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